Accounting for Decision Makers - C213 Practice Questions and Answers 100% Pass

Accounting for Decision Makers - C213 Practice Questions and Answers 100% Pass Bookkeeping - Correct Answer ️️ -is the preservation of a systematic, quantitative record of an activity Accounting - Correct Answer ️️ -A system of providing "quantitative information, primarily financial in nature, about economic entities that is intended to be useful in making economic decisions." The key features of this definition are the following: Numbers: Accounting is quantitative. This is a strength because numbers can be easily tabulated and summarized. It is a weakness because some important business events, such as a toxic waste spill and the associated lawsuits and countersuits, cannot be easily described by one or two numbers. A financial dimension: The status and performance of a business is affected by and reflected in many dimensions—financial, personal relationships, community and environmental impact, and public image. Accounting focuses on just the financial dimension. Usefulness: The practice of accounting is supported by a long tradition of theory; U.S. accounting rules in fact have a theoretical conceptual framework, and some people actually make a living as accounting theorists. However, in spite of its theoretical beauty, accounting exists only because it is useful. Future decisions based on past information: Although accounting is the structured reporting of what has already occurred, this past information can only be useful if it impacts decisions about the future. financial accounting - Correct Answer ️️ -which is the name given to accounting information provided for and used by external users. Managerial accounting - Correct Answer ️️ -the name given to accounting systems designed for internal users financial statements - Correct Answer ️️ -The three primary financial information documents: the balance sheet, income statement, and statement of cash flows. balance sheet - Correct Answer ️️ -reports the resources of a company (the assets), the company's obligations (the liabilities), and the owners' equity, which represents how much money has been invested in the company by its owners. income statement - Correct Answer ️️ -This document reports the amount of net income earned by a company during a period, with annual and quarterly income statements being the most common. statement of cash flows - Correct Answer ️️ -This document reports the amount of cash collected and paid out by a company in the following three types of activities: operating, investing, and financing. The emphasis in financial accounting is on which of the following external user groups? - Correct Answer ️️ -Investors and creditors The primary internal group that uses accounting information is - Correct Answer ️️ - Management Internal reports are generally used by - Correct Answer ️️ -Management Which of the following is NOT an external user of financial information? - Correct Answer ️️ -Management accounting standards are set by the? - Correct Answer ️️ -Financial Accounting Standards Board (FASB). The FASB is based in Norwalk, Connecticut; its seven full- time members are selected from a variety of backgrounds—professional accounting, business, government, and academia. FASB is not a government agency, it lacks the legal power to enforce the accounting standards it sets. Generally Accepted Accounting Principles (GAAP) - Correct Answer ️️ -a set of accounting standards that is used in the preparation of financial statements Which of the following is NOT true of the Financial Accounting Standards Board (FASB)? - Correct Answer ️️ -It is a government agency Generally accepted accounting principles are - Correct Answer ️️ -Developed by accounting rule makers The initials GAAP stand for - Correct Answer ️️ -Generally Accepted Accounting Principles The current standard-setting board for accounting in the private sector is the - Correct Answer ️️ -Financial Accounting Standards Board (FASB)